Dagangan, an Indonesian social e-commerce website, has secured US $6.6 million in pre-series B financing headed by BTPN Syariah Ventura, a local lender’s venture capital arm.
Hendra Kwik, co-founder and CEO of financial company Payfazz, joined the fundraising in addition to Dagangan’s current supporters.
The latest round of investment follows Dagangan’s two rounds of fundraising in 2021, which enabled the firm to fund its white-label approach and develop additional product features.
Meanwhile, the new round’s revenues will be utilised to extend the company’s footprint in more rural regions across Java and to accelerate product development.
Dagangan is an e-Commerce platform that offers same- and next-day delivery for a range of home requirements, including basic commodities, fresh and frozen food, clothes, and more. It was founded in 2019. It employs a tech-enabled hub-and-spoke strategy that capitalises on the responsibilities of key opinion leaders (KOLs) in rural regions, such as village chiefs, microentrepreneurs, and community leaders.
Dagangan collaborates with supply chain partners, such as producers and wholesalers of fast-moving consumer items, to deliver KOL-generated group orders to customers within 24 hours.
Since collecting US $11.5 million in its previous fundraising round in September 2021, the firm claims it has experienced a 5x increase in revenue.
Dagangan has more than 40 distribution centres spread across Central Java, West Java, and the Yogyakarta special zone, allowing it to reach 15,000 communities in 40 districts with its products and services.